Become a Crorepati
Invest ₹10K/Month & Get ₹1 Crore returns*
+91
*T&C Applied.
Post Office Senior Citizen Savings Scheme 2024
The Post Office Senior Citizen Savings Scheme (SCSS) is a government-backed scheme designed specifically for senior citizens in India. It provides a secure investment option with an attractive SCSS interest rate and flexible terms, making it a popular choice among the elderly population seeking safe investment avenues.
loading...
loading...
loading...
Investment Plans
-
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶ -
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D)) -
Compare & Choose 30+ Plans and 150+ Fund options
We are rated~
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold
Top performing plans with High Returns**
Invest ₹10K/month & Get ₹1 Crore# on Maturity
-
Home
-
Life Insurance
-
Investment Plans
-
Articles - IP
- Post Office Senior Citizen Savings Scheme (SCSS) 2024
What is the Post Office Senior Citizen Savings Scheme (SCSS)?
The Post Office Senior Citizen Savings Scheme, also known as the Senior Citizen Saving Scheme Post Office, is a beneficial investment scheme designed specifically for senior citizens in India. It caters to individuals aged 60 and above, providing them with a safe and reliable option to grow their savings.Â
The Post Office Senior Citizen Saving Scheme offers an attractive interest rate, currently at 8.2% per annum (as of May 26, 2024), which is among the highest among small saving schemes in India. The interest is compounded quarterly and paid out every three months, ensuring a steady stream of income for retirees. With the security of being backed by the Government of India, the Senior Citizen Post Office Scheme provides peace of mind and reduces investment risk.
Features and Benefits of the Senior Citizen Saving Scheme Post Office
The Post Office Senior Citizen Scheme is a government-backed investment scheme in India designed for senior citizens. Below are the features and benefits of the Post Office Monthly Income Scheme for Senior Citizens:Â
-
Eligibility: The Senior Citizen Saving Scheme Post Office is Open to Indian residents aged 60 and above. Even retired individuals below 60 who opted for voluntary retirement schemes (VRS) or superannuation can qualify.
-
Investment limits: Minimum deposit of Rs.1,000 and a maximum of Rs.30 lakh across all the Post Office Senior Citizen Scheme accounts held by an individual. Deposits are made in multiples of Rs.1,000.
-
Account type: The Post Office Senior Citizen Saving Scheme account can be opened individually or jointly with a spouse only.
-
Tenure: 5 years, with an option to extend for a further 3 terms of 3 years each.
-
Interest: Currently the Post Office Senior Citizen Scheme offers an attractive interest rate of 8.2% per annum (as of April 1, 2024). Interest is compounded quarterly and paid out every quarter.
-
Tax benefits: The Senior Citizen Saving Scheme Post Office offers tax deductions under Section 80C of the Income Tax Act.
-
High returns: One of the highest interest rates among small saving schemes, providing a steady income stream for retirees.
-
Government guaranteed: The Post Office Scheme for Senior Citizens is backed by the Government of India, ensuring capital protection and timely interest payments.
-
Low risk: Considered a low-risk investment due to government backing.
-
Liquidity: Premature closure is allowed under the post office senior citizen saving scheme after 1 year, though a penalty applies if closed before maturity.
-
Nomination facility: Allows account holders to nominate a beneficiary to receive the account balance in case of death.
-
Transferability: Accounts can be transferred between authorized banks and post offices.
How Many Accounts Can a Senior Citizen Open Under SCSS?
It is important to know that the Post Office Senior Citizen Scheme provides the option to deposit the funds into your account in a lump sum. As a result, you can also open multiple accounts under the senior citizen saving scheme post office, given that the total amount deposited does not exceed the maximum limit of Rs. 30 lakhs. However, opening more than one account in the same deposit branch is prohibited within the same calendar month.
Post Office Senior Citizen Saving Scheme Interest Rates
The central government authorizes the SCSS interest rate on the Post Office Senior Citizen Saving Scheme. Currently, it is 8.20% per annum (from April 01 to June 30, 2024).
The following table shows the Post Office Senior Citizen Scheme interest rate in India:
| Period | Post Office Senior Citizen Scheme Interest Rate (in % p.a.) |
|---|---|
| Aug 2, 2004 - Mar 31, 2012 | 9 |
| Apr 1, 2012 - Mar 31, 2013 | 9.3 |
| Apr 1, 2013 - Mar 31, 2015 | 9.2 |
| Apr 1, 2015 - Mar 31, 2016 | 9.3 |
| Apr 1, 2016 - Sep 30, 2016 | 8.6 |
| Oct 1, 2016 - Mar 31, 2017 | 8.5 |
| Apr 1, 2017 - Jun 30, 2017 | 8.4 |
| Jul 1, 2017 - Sep 30, 2018 | 8.3 |
| Oct 1, 2018 - Jun 30, 2019 | 8.7 |
| Jul 1, 2019 - Mar 31, 2020 | 8.6 |
| Apr 1, 2020 - Sep 30, 2022 | 7.4 |
| Oct 1, 2022 - Dec 31, 2022 | 7.6 |
| Jan 1, 2023 - Mar 31, 2023 | 8 |
| Apr 1, 2023 - March 31, 2024 | 8.2 |
| April 1, 2024 - June 30, 2024 | 8.2 |
Documents Required for Post Office Senior Citizen Saving Scheme (SCSS)
To make an Investment in Senior Citizen Saving Scheme Post Office, the following documents need to be submitted by the applicants:-
-
Fill out the application form available at the Bank or Post office
-
Fill out the Know Your Customer (KYC) form
-
Provide the Permanent Account Number (PAN) Card Number
-
Address Proof
-
Recent Photograph
-
Age Proof
-
Aadhaar Card
-
Retirement Benefits’ Disbursal Date
Also, the Applicant’s Employer Certificate mentioning the retirement VRS or Superannuation needs to be submitted.
How to Open a Senior Citizen Saving Scheme in the Post Office?
Following are the steps to open a Post Office Senior Citizen Saving Scheme account at a post office in India:
Step 1: Visit your nearest post office branch.
Step 2: Collect and fill out the Post Office Senior Citizen Scheme application form. You can usually obtain the form at the post office itself, or you might be able to download it from the India Post website.
-
Here is how to fill out the form:
-
Enter the name of the post office branch.
-
If you already have a savings account with the post office, enter your account number.
-
Fill in your name and tick the "SCSS" option.
-
Attach two recent passport-sized photographs.
-
Provide details like your address and contact information.
-
Step 3: Submit the completed application form along with the required documents. These documents typically include:
-
Know Your Customer (KYC) documents:
-
Identity proof (PAN card, Voter ID, Aadhaar card, or passport)
-
Address proof (Aadhaar card, utility bills, etc.)
-
Age proof (PAN card, Voter ID, birth certificate, or senior citizen card)
-
-
Proof of initial deposit:Â This can be a cheque or cash (depending on the post office's policy).
Once you submit the application and documents, the post office staff will process your request and open your Senior Citizen Post Office Scheme account. You will receive an account statement or passbook reflecting your initial deposit.
NOTE:
-
To make payment by cash, the amount should be less than Rs. 1 lakh, and if it is above Rs. 1 lakh then it is possible to pay by cheque. Submit all the documents that are mentioned above.
-
You can nominate one or more individuals to receive the account balance in case of your demise.
Online Payment Facility for Post Office Senior Citizen Saving Scheme
As of today, April 19, 2024, there is no direct online payment facility for opening a Senior Citizen Saving Scheme Post Office account.
Here is what you can do:
-
Visit your local post office branch that offers Post Office Senior Citizen Saving Scheme accounts.
-
Collect and fill out the Senior Citizen Post Office Scheme application form.
-
Submit the completed form along with required documents like ID proof, address proof, age proof (PAN card, Aadhaar card etc.), and KYC documents.
-
Make the initial deposit amount through cash or cheque.
Other Post Office Savings Schemes vs. Post Office Senior Citizen Scheme (SCSS)Â
| Scheme | Minimum Investment | Maximum Investment | Tenure | Interest Rate | Interest Payment | Tax Benefits | Eligibility |
| SCSS | Rs.1,000 | Rs.30 lakh | 5 yrs (extendable by 3 yrs) | 8.2% p.a. | Quarterly | Taxable under Section 80C | 60+ years old |
| Savings Account (SB) | Rs.500 | No maximum | - | 4.0% p.a. | Minimum balance method | No | All |
| Recurring Deposit (RD) | Rs.100 | Rs.5 lakh | 1-5 yrs | 6.9% - 7.5% p.a. (varies by term) | Quarterly | No | All |
| Monthly Income Scheme (MIS) | Rs.1,000 | Rs.4.5 lakh | 1 year | 7.1% p.a. | Monthly | No | All |
| Public Provident Fund (PPF) | Rs.500 | Rs.1.5 lakh/year | 15 yrs (extendable) | Variable (quarterly reset) | Yearly | Tax rebate under Section 80C, interest tax-free | All |
| Kisan Vikas Patra (KVP) | Rs.1,000 (multiples) | No maximum | 118 months (9 yrs, 2 months) | Maturity value pre-determined | Maturity | No | All |
Sum It Up
The Post Office Senior Citizen Saving Scheme (SCSS) stands as a reliable and attractive investment option customised for the financial security of senior citizens. Offering competitive interest rates, tax benefits, and government backing, it presents a prudent choice for retirees seeking stable returns and peace of mind.Â
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Past 10 Years' annualised returns as on 01-12-2024
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
- SIP Calculator
- Income Tax Calculator
- Compound Interest Calculator
- NPS Calculator
- Show More Calculator
Investment Calculator
- One time
- Monthly
₹
/ Year
Sensex has given 10% return from 2010 - 2020
View plans
Investment plans articles
Recent Articles
Popular Articles
20 Nov 2024
The ICICI Compound Interest Calculator is a valuable financial
11 Nov 2024
Annual Percentage Rate (APR) means the interest rate you will